Avient accelerates timing on $725 million notes offering; books close Wednesday morning

By Paul A. Harris

Portland, Ore., July 26 – Avient Corp. accelerated timing on an oversubscribed $725 million offering of senior notes due 2030 (Ba3/BB-) coming in support of its acquisition of Royal DSM’s Dyneema protective materials business, according to market sources.

Both the investor call and the deadline for commitments were moved ahead. The call was pushed up to Tuesday from Wednesday. And books close at 10:30 a.m. ET on Wednesday, whereas the deal, when it was announced on Tuesday morning, had been expected to remain in the market until Friday.

Reverse inquiry on the offer ran to 1.5-times deal size, according to a sellside source, who added that the order books were three-times deal size on Tuesday afternoon.

Pending official price talk, the deal is in the market with initial guidance in the 7½% area.

That guidance is tight to pre-marketing price conversations that took place in the high 7% area, according to a high-yield portfolio manager.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners. BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the co-managers.

The notes come with three years of call protection and feature a special mandatory redemption at par if the acquisition is terminated or if it is not consummated on or prior to April 19, 2023.

The Avon Lake, Ohio-based specialized polymer materials manufacturer intends the proceeds plus a $500 million term loan and balance sheet cash to support its acquisition of all of the equity interests in DSM Protective Materials International BV, DSM Protective Materials BV, and DSM Protective Materials LLC from Koninklijke DSM NV (Royal DSM).

Upon acquiring the color masterbatch businesses of Clariant and Clariant Chemicals India Ltd. in July 2020 PolyOne Corp. changed its name to Avient.

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